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SALT LAKE CITY - Co-Diagnostics, Inc. (NASDAQ:CODX) announced Wednesday that it has engaged Maxim Group LLC as its exclusive financial advisor to explore strategic alternatives for its Indian joint venture, CoSara Diagnostics Pvt. Ltd. The micro-cap company, with a market capitalization of just $18.25 million, has seen its shares drop over 23% in the past week.
The molecular diagnostics company said it is considering options including a potential merger with a Special Purpose Acquisition Company (SPAC) or similar entity listed on a U.S. national securities exchange.
"We are pleased to be working with Maxim as we seek to unlock value for CoSara, and for our shareholders, and to help CoSara fully realize its founding vision," said Dwight Egan, Co-Diagnostics' CEO, in a press release statement.
CoSara was established in 2017 as a joint venture between Co-Diagnostics and Synbiotics Ltd, a group company of Asence Inc. Synbiotics is a subsidiary of Ambalal Sarabhai Enterprises Ltd., which is publicly listed on the Bombay Stock Exchange.
The joint venture aims to manufacture and sell molecular diagnostics products in certain international markets, with an initial focus on India, according to the company.
Co-Diagnostics develops, manufactures and markets molecular diagnostic technologies that are designed to detect and analyze nucleic acid molecules. The Utah-based company also uses its proprietary technology to design specific tests for its Co-Dx PCR platform and to identify genetic markers for applications beyond infectious disease.
The company noted that any strategic transaction would be subject to negotiation, execution, and necessary approvals.
In other recent news, Co-Diagnostics, Inc. announced the closing of a registered direct offering, raising approximately $7 million in gross proceeds. The company plans to use the funds for working capital and general corporate purposes. This offering involved the sale of 12,727,272 shares of common stock at $0.55 per share, as per a securities purchase agreement with institutional investors. Additionally, Co-Diagnostics has entered into a definitive agreement to form a joint venture in Saudi Arabia named CoMira Diagnostics. This venture, in partnership with Arabian Eagle Manufacturing, aims to develop, manufacture, and commercialize Co-Dx technologies across Saudi Arabia and 18 other countries in the Middle East and North Africa. Arabian Eagle will manage local operations, while Co-Diagnostics will provide an exclusive license for its intellectual property. These developments reflect significant strategic moves for Co-Diagnostics in expanding its market presence and securing additional capital.
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